Where an asset is measured on the basis of the discounted net cash flows that are expected to be generated by the future use of the item, the resulting measure is referred to as:
A) fair value.
B) net realisable value.
C) historic cost.
D) economic value.

Question

Quizplus · Accepted Answer

Economic value is determined by the discounted net cash flows expected from the future use of the asset, reflecting its value in terms of the income it can generate.

Where an Asset Is Measured on the Basis of the Discounted